4. Benefits
• Budgeting is a best way to reach your financial
goals.
• It help to live within income.
• Meet financial Emergencies.
• Gain a sense of financial Independence.
Budgeting
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5. A Budget Tells us what we can’t afford,
but it doesn’t keep us from buying it.
William feather
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7. Steps to make budget
• Include al Fixed bills such as rent, electricity and
gas bills etc.
• Subtract these bills from your income then you
know how much you left.
• Save left money for emergency financing situation.
• Make Asset debt statement(Net worth statement).
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18. • Record all your expense on paper or spreadsheet.
• Review your each month expense.
• Buy what you need , not what you want.
• Make it habit to check your bank ,credit and saving
statement.
• Try/strive to own a house instead of renting.
• Avoid from bank loans because they charge interest
on it.
Money Management
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19. • Stay away from short cuts to wealth such as
gambling and other schemes to make rich.
• Seek a financial adviser to help you plan your
finances and investments.
Money Management
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The next section of the Monthly Planner deals with your monthly expenses.
First you have your living expenses. There are sections for figuring out the details of your utilities, personal allowances and annual expenses a little later on. You want to be thorough in this section in order to get a clear picture of your situation. When it comes to your monthly spending, you want as few surprises as possible.
Next it’s important to detail any credit payments you are making each month, be they to a credit card, a line of credit, a student loan, a car loan, and so on. Again, be thorough.
Once you have figured out the full amount of your monthly spending, you can add together your monthly savings contributions, your living expenses and your total monthly credit payments to figure out what your total monthly budget will be.
Next the Monthly Planner will help you to figure out the details of your expenses for you to enter on the previous chart.
Monthly utilities go up and down each month, so you will want to take an average of your last twelve months in order to fill in this chart. Remember that utilities like power and natural gas can go up in the winter, your phone bill may fluctuate with long distance or data overage charges, while your cable bill will probably stay fairly constant throughout the year.
For your personal allowances and recreation, you will want to allow yourself some breathing room. Be thorough, but keep in mind that this is where you will need to trim if you find your expenses and savings are outpacing your monthly income. These two totals will then get transferred to the previous sheet.